You wanted to know whether I had a loss a loss or gain) I believe with this info you can help me better:
Current Market value $200,000.00
Purchase price it cost me $250,000.00
Capital loss (50,000.00)
Depreciation taken on the rental house to date: $ 48,000.00. This I believe is a long term gain to be recaptured, and it is taxable. But when you report this gain, you also must report the loss in value. My question is : Can you offset the capital gain of $48,000 from the LT loss of $50,000.00 in the tax return for 2010?
ABOUT DEBT FORGIVENESS in CH.7. Our debt on the house was discharged in Chapt 7. This would be loan balance of $328,000.00 less $200,000.00, Market value equals $128,000.00 of debt. This I know because my bankruptcy lawyer told me the debt is discharged forever. And I received my Chapt 7 discahrge to prove it.
It is the capital losses and gains aspects I am concerned when the house to be gets foreclosed on this month. Yes bankruptcy book says that if you can't pay you will be foreclosed on, regardless that the debt was previously discharged. I will pay you only if you answer the questions about the gains and loss qustions.